An ABA transit number that appear on standard checks and are used to identify specific U.S. financial institutions.

ABA transit numbers, also known as ABA routing or routing transfer numbers, are used to identify specific U.S. financial institutions and appear on standard checks. ABA transit numbers, also known as ABA routing or routing transfer numbers, are used to identify specific U.S. financial institutions and appear on standard checks. The ABA routing number appears in two forms on most checks: as a machine-readable nine-digit number on the bottom left (followed by the checking account number), and as a fraction at the top. Sometimes referred to as a check routing number, ABA transit numbers were developed by the American Bankers Association in 1910 to indicate check processing endpoints. The seventh digit in the number identifies the assigned Federal Reserve check processing center for the bank, and the eight represents the Federal Reserve district the bank resides in.

ABA Transit Number

An account balance is the amount of money in a financial repository, such as a savings or checking account, at any given moment.

An account balance is the amount of money present in a financial repository, such as a savings or checking account, at any given moment. An account balance represents the available funds, or current account value, of a particular financial account, such as a checking, savings, or investment account. For specific accounts at a financial institution, such as a checking account or a brokerage account, your account balance will reflect the current sum of funds or value of that account. In the case of a checking account, if your starting balance is $500, and you received a check for $1,500 and also wrote a check or scheduled an automatic payment for $750, then your account balance might show $2,000 immediately, depending on the banking establishment. An account balance that falls below zero represents a net debt—for example, when there is an overdraft on a checking account.

Account Balance

A bad check is a check drawn on a nonexistent account or on an account with insufficient funds to honor the check when presented. 

Table of Contents
What Is a Bad Check?
Understanding Bad Checks
Bad Checks and the Law
How to Avoid Writing a Bad Check
If You Receive a Bad Check If you write a bad check unintentionally, contact the recipient and your bank immediately to pay any fees caused by the bad check and what you owe. Civil penalties apply in all cases, with a common penalty amount equivalent to the check's face value, a multiple of the check amount with a cap, or the check amount plus court and attorney fees. The Bottom Line
A bad check refers to a check that cannot be negotiated because it is drawn on a nonexistent account or has insufficient funds. A bad check refers to a check that cannot be negotiated because it is drawn on a nonexistent account or one that has insufficient funds.

Bad Check

Bill presentment, like a bank check, is an instruction that directs a third party to pay the recipient a fixed sum.

Bill presentment refers to a set of instructions that directs a third party (e.g., a customer) to pay the recipient a specified amount of money. Electronic bill presentment and payment (EBPP) is an online system that allows invoices to be created, processed, and paid over the internet, and has functionally replaced paper-based bill presentment. Electronic bill presentment and payment (EBPP) has essentially replaced paper-based bill presentment. Late fees or surcharges may be added if payment of the bill is delinquent.
Bill presentment relies upon being able to deliver the bill to the customer. Bill presentment is often used by vendors such as utilities (e.g. phone companies, electricity & gas providers), lenders, insurers, and other service companies to demand payment by check or credit card, or else directly from their customers' bank accounts.

Bill Presentment

A blank endorsement is a document such as a check that is signed but has no designated payee. It is risky since anyone can cash it.

A blank endorsement is a signature on a financial instrument such as a check. The other type of check endorsement is called a special endorsement, and is used by a payer to give the check to a particular individual. Some banks prefer a check with a restrictive endorsement to have the recipient’s account number written clearly on the check, while others see this as a security risk. One is a restrictive endorsement, in which the party writing the check notes “For deposit only” on the first line of the back of the check and then signs underneath. The most familiar example of a blank endorsement is a check made payable to cash and endorsed on the back with the signature of the account holder.

Blank Endorsement

A bounced check is slang for a check that cannot be processed because the writer has insufficient funds.

Average bank overdraft fee in the United States from 1998 to 2020

A bounced check is slang for a check that cannot be processed because the account holder has nonsufficient funds (NSF) available for use. When a check bounces, they are not honored by the depositor's bank, and may result in fees and banking restrictions.
Additional penalties for bouncing checks may include negative credit score marks, refusal of merchants from accepting your checks, and potentially legally trouble.
Banks often offer overdraft protection to prevent inadvertent check bouncing.
Many times, bad checks are written inadvertently by people who simply are unaware that their bank balances are too low. Negative reports with organizations like ChexSystems can make it hard for consumers to open checking and savings accounts in the future.﻿﻿ In some cases, businesses collect a list of customers who have bounced checks, and they ban them from writing checks at that facility again.
Consumers can reduce the number of bounced checks they write by tracking their balances more carefully, using an ironclad system of recording every single debit and deposit on a check register as soon as it occurs, or by keeping close tabs on their checking account using online banking. For example, if someone writes a check to the grocery store and the check bounces, the grocery store may reserve the right to redeposit the check along with a bounced check fee. If this system connects the check you’ve just presented for payment to a history of unpaid checks, the merchant will decline your check and ask you for a different form of payment.

Bounced Check

A canceled check is a check that has been paid or cleared by the bank it was drawn on and is marked "canceled" so that the check cannot be used again.

A canceled check is a check that has been paid or cleared by the bank it was drawn on after it has been deposited or cashed. A canceled check indicates that the clearing process has been complete, and so canceled checks can be used as proof of payment.
A check may also be cancelled by its writer before it has been transacted by alerting the issuing bank.
A canceled check has been paid after going through a check clearing process. While a canceled check is honored by the bank, a returned check is a check that did not clear the payor's bank, and as a result, the funds would not be made available to the payee or the depositor. Jan's bank debits Jan's account for the amount of the check, sends the funds to Bob's bank, and stamps the check as canceled. The drawee's bank (or the bank the check was written from) pays the payee's bank the funds if there are sufficient funds in the payor's account.

Canceled Check

Cash cards, which may include debit cards, gift cards, or payroll cards, are electronic payment cards that store cash for various types of payments.

A cash card is an electronic payment card that stores cash for various types of payments. Cash cards may include bank debit cards, prepaid debit cards, gift cards, and payroll cards. A cash card is a term for a payment card that stores cash, such as debit, gift, or prepaid debit cards. These cards are generally known as prepaid cards and help to support the underbanked population by providing a cash card that is not linked to a bank account. Square is one of the leading providers of cash cards and prepaid cash card services.

Cash Card

A cashier’s check is a check written by a financial institution on its own funds, signed by a representative, and made payable to a third party.

A cashier’s check is a secure way to make large payments. The letter contains a cashier’s check, and it instructs the victim to use part of the check to buy merchandise during the mystery shopping excursions, wire part of the check to a third party, and keep the remainder as pay. When you request a cashier's check from your bank, money is moved out of your account and into the bank's account, and then a bank representative (usually a teller) signs it over to a named third party. 1:11
An individual can use a cashier’s check instead of a personal check to guarantee that funds are available for payment. A cashier’s check is secure because the individual must first deposit the amount of the check into the issuing institution’s own account.

Cashier's Check

A certified check is a type of check for which the issuing bank guarantees that enough cash will be available when the recipient decides to use the check.

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A certified check is a type of check for which the issuing bank guarantees that there will be enough cash available in the holder's account when the recipient decides to use the check. Situations that require certified checks often include those in which a recipient is unsure about the creditworthiness of the account holder, or in which the recipient does not want the check to bounce.
A certified check is a check for which the issuing bank guarantees the availability of cash in a holder's account.
Banks typically set aside the amount of money listed on the certified check in the holder's account.
Certified checks are used to reduce the risk of non-payment in case the writer of the check does not have sufficient funds in their account.
Downsides to using a certified check include depositors not being able to place a stop payment order on a certified check and fees charged for issuing a certified check.
Certified checks are most often used for payments involving large sums of money.
Personal checks can come with a certain amount of risk. A certified check is a type of check for which the issuing bank guarantees that there will be enough cash available in the holder's account when the recipient decides to use the check. Because a check is not cash but instead a promise of payment, there is always the risk that when the recipient of the check goes to cash it, that it may bounce, meaning that the writer of the check does not have the money for payment. A certified check does not draw funds right away from an account holder's account; the money stays in their account until the check is cashed.

Certified Check

A check hold denotes the maximum number of days that a bank can legally hold the money from a deposited check. 

A check hold denotes the maximum number of days that a bank can legally hold the money from a deposited check. Banks may not hold cash or electronic payments, direct deposit, money orders, Treasury checks; Federal Reserve Bank and Federal Home Loan checks, cashier’s, certified, or teller’s checks, and state or local government checks, along with the first $5,000 of traditional checks that are not in question (next-day items). The Federal Reserve requires that a bank hold most checks before crediting the customer’s account for no longer than a “reasonable period of time,” which is regarded as two business days for a same-bank check and up to six business days for one drawn on a different bank. The definition of overdrawn is if the account had a negative balance on six or more banking days during the most recent six month period, or if the account balance was negative by $5,000 or more two times in the most recent six month period.
4.  If a bank has reasonable cause to doubt the collectibility of a check (e.g., doubtful collectibility). 2.  Checks that are re-deposited may be held for a reasonable period of time; however, if a customer returns the check due to a missing endorsement or because the check was postdated, once the bank corrects the deficiency, it may not hold said check as redeposited.

Check Hold

A check routing symbol is a set of numbers appearing as the denominator of a fraction that is printed in the upper right corner of any check.

Banking Automation: Data Processing Systems and Associated Equipment, Volume 1

Commercial Checks Collected through the Federal Reserve: Annual Data

A check routing symbol is a set of numbers appearing as the denominator of a fraction that is printed in the upper right corner of any check that is paid through the Federal Reserve system. Checks have the following information embedded on them: The routing number appears first (usually at the bottom of personal checks), followed by the account number, and then the check number. Checks have the following information embedded on them: The routing number appears first (usually at the bottom of personal checks), followed by the account number, and then the check number. The check routing symbol contains three or four digits and provides three pieces of information: the Federal Reserve district of the paying bank, the facility that processed the check, and the funds' availability status assigned by the Fed. A check routing symbol is a set of numbers appearing as the denominator of a fraction that is printed in the upper right corner of any check that is paid through the Federal Reserve system.

Check Routing Symbol

A check is a written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.

Economic Review: The Evolution of the Check as a Means of Payment: A Historical Survey

A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer. When the payee presents a check to a bank or other financial institution to negotiate, the funds are drawn from the payor’s bank account. The person or entity writing the check is known as the payor or drawer, while the person to whom the check is written is the payee. The payor writes the check and presents it to the payee, who then takes it to their bank or other financial institution to negotiate for cash or to deposit into an account. These numbers represent the bank’s routing number, the payor’s account number, and the check number.

Check

Checkable deposits consist of any demand deposit account against which checks or drafts of any kind may be written. 

Checkable deposits is a technical term for any demand deposit account against which checks or drafts of any kind may be written. Innovative technologies are also increasing the money transfer and transaction capabilities for checkable accounts, providing for faster settlement and instant peer-to-peer transfers.
Checkable deposit accounts are the most liquid accounts a consumer can open.
Personal banking institutions are the primary place to open a checkable deposit account, and there are several types available to customers.
Checkable deposit accounts include checking, savings, and money market accounts. Banks and other financial institutions may also offer special demand deposit accounts, such as Super NOW accounts or accounts that allow for negotiable drafts and negotiable orders of withdrawal. If you have enough cash, you can find accounts that pay interest of around 1.5% or even more (as of July 2019, CIT Bank offered customers a 2.45% APY on an account with a $25,000 minimum deposit) if you keep balances of a certain size in the account—or in that bank. Banks offer money market accounts with interest and invest these funds in short-term cash instruments, which allows them to pay out the interest to money market accountholders.

Checkable Deposits

A checkbook is a folder or small book containing preprinted paper instruments used to pay for goods or services issued to checking account holders.

A checkbook is a folder or small book containing preprinted paper instruments issued to checking account holders and used to pay for goods or services. The receiver of a check deposits it in their account and when the check clears, the funds are transferred into the payee's account. After Bob fills out the check with the payee's information, the payee must then deposit the check into their own bank account. In addition, each check will also include the bank's routing number, the account number, and the check number. Bob was issued a checkbook with 100 checks which he can use to pay funds from the account to providers of goods or services.

Checkbook

Check representment is a service offered by banks that resubmits a bounced check to the check writer's account until funds are available for payment.

Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers Through Fedwire

Availability of Funds and Collection of Checks

Check representment is a service offered by banks that resubmits a bounced check to the check writer's account until funds are available for payment. Check representment is a service offered by banks that resubmits a bounced check to the check writer's account until funds are available for payment. Check representment is a service offered by banks to resubmit a bounced check to the check writer's account until funds are available. In the check representment process, the bounced check is usually converted into an electronic item for representment. Check representment reduces time and expense involved in collections processes for businesses and helps banks flag accounts that have a history of bounced checks.

Check Representment

Countermand means to cancel, revoke, or reverse an order that has been previously issued.

Delbrueck & Co. v. Manufacturers Hanover Trust Company, 609 F.2d 1047 (2d Cir. 1979)

Countermand means to cancel, revoke, or reverse an order that has been previously issued. Where electronic fund transfers are concerned, if the funds have not yet been transferred, a countermand order would cancel the original funds transfer order. In the case of check payments, a customer can countermand the payment at any time before the check is presented, through a stop-payment order. Countermanding an international funds transfer order depends on whether the payment has been completed and on the technology platform used. In the financial world, countermand is usually applicable to payments; it means a customer of a bank or financial institution revoking instructions to pay, or stopping payment to another party.

Countermand

A crossed check is a check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check.

A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check. A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check. A crossed check is a check that is crossed with two parallel lines, either through the top left-hand corner of the check or horizontally across the whole check. An open check, which is also referred to as a bearer check, describes any check that is not crossed. If the payee did not truly have the funds available to cover cashing the check, the bank may be held responsible for any associated losses.

Crossed Check

A debit card lets consumers pay for purchases by deducting money from their checking account. Learn how debit cards work, their fees, and pros and cons.

What Types of Fees Do Prepaid Cards Typically Charge?

"Lost or Stolen Credit, ATM, and Debit Cards."

Table of Contents
What Is a Debit Card? Given that many bank debit cards are being issued by credit card companies, the distinction between credit and debit cards can seem as thin as, well, a piece of plastic. If you use your credit card to get cash at an ATM, the money isn't coming out of your bank account, it's coming from your credit card account. Debit Card vs. Credit Card
Pros and Cons of a Debit Card
Debit Card FAQs
The Bottom Line
A debit card is a payment card that deducts money directly from a consumer’s checking account when it is used. Because debit cards don't charge merchants much, merchants don't impose minimum-purchase amounts on debit cards, as they often do with credit cards.

Debit Card

Electronic check presentment allows financial institutions to exchange digital images of checks to increase the speed of the check-cashing process.

Frequently Asked Questions about Check 21

Electronic check presentment (ECP) is a process that allows financial institutions to exchange digital images of checks instead of paper to increase the speed of the check-cashing process. With electronic check presentment, when a check is deposited into a payee's bank account or a check is cashed, an electronic copy of the check is sent to the bank or financial institution that houses the account from which the funds were drawn. Electronic check presentment (ECP) is a process that allows financial institutions to exchange digital images of checks instead of paper to increase the speed of the check-cashing process. The Check 21 Act allows financial institutions to remove paper checks from the check processing flow in order to make an electronic or digital copy of the check. Electronic check presentment saves financial institutions the cost of sending paper checks to other financial institutions and the cost of storing paper checks.

Electronic Check Presentment (ECP)

An electronic check is a form of payment made via the internet that is designed to perform the same function as a conventional paper check.

An electronic check, or e-check, is a form of payment made via the Internet, or another data network, designed to perform the same function as a conventional paper check. An electronic check, or e-check, is a form of payment made via the Internet, or another data network, designed to perform the same function as a conventional paper check. Not only is there no requirement for a physical paper check, which costs money to produce, but also electronic checks do not require physical postage in cases of payments being made to entities outside the direct reach of the entity issuing the funds. Additionally, taxpayers who are owed a refund on federal tax returns can elect to receive a directly deposited electronic check from the Internal Revenue Service (IRS) instead of having a physical paper check sent through the mail. An electronic check is part of the larger electronic banking field and part of a subset of transactions referred to as electronic fund transfers (EFTs).

Electronic Check

Float time is the interval between when an individual submits a check and when the bank receives instruction to move funds from the account.

Public Law 108-100. Check Clearing Act for the 21st Century

Check Clearing for the 21st Century Act (Check 21)

County Jailers Arrested in Check-Cashing Scheme

Float time refers to the amount of time between when an individual writes and submits a check as payment and when the individual's bank receives the instruction to move funds from the account. Before Check 21, individuals would sometimes take advantage of long float times and send out checks despite not having enough money in their accounts to cover the value of the checks. Float time refers to the amount of time between when an individual writes and submits a check as payment and when the individual's bank receives the instruction to move funds from the account. Individuals who attempt to use a check's float time in the manner previously described should be aware that doing so will likely result in several bounced checks as float times have become dramatically shorter. Before the implementation of the Check Clearing for the 21st Century Act (Check 21), the average float time was two to four days.

Float Time Defined

A negative float is the difference between checks written against and deposited in an account and those that have cleared according to bank records.

"Negative float" refers to the difference between checks written against—or deposited in—in a checking account and those checks that have cleared (according to bank records). When a checking account owner writes a check, the funds represented by the check remain in the account until the check is presented to and cleared by the check writer's bank. A check writer might decide to keep a register so that they can balance their checking account and avoid being confused by an account balance that may show funds that are pending withdrawal to cover checks written. Traditionally, a check writer keeps a register to be able to balance the account and avoid being confused by an account balance that may show funds that are pending withdrawal to cover checks written. With online banking, checking account holders can check their balance easily, and debit card transactions are usually posted immediately and are reflected by the bank in the difference between the account balance and available funds.

Negative Float

A negotiable instrument (e.g., a personal check) is a signed document that promises a sum of payment to a specified person or the assignee.

A negotiable instrument is a signed document that promises a sum of payment to a specified person or the assignee. Because they are transferable and assignable, some negotiable instruments may trade on a secondary market.
A negotiable instrument is a signed document that promises a sum of payment to a specified person or the assignee. A negotiable instrument is a signed document that promises a sum of payment to a specified person or the assignee. For an instrument to be negotiable, it must be signed, with a mark or signature, by the maker of the instrument—the one issuing the draft. Negotiable instruments are transferable in nature, allowing the holder to take the funds as cash or use them in a manner appropriate for the transaction or according to their preference.

of a Negotiable Instrument

An NSF fee or non-sufficient funds fee occurs when a bank account does not have enough money to cover a payment. Read about NSF fees and how to avoid them.

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Table of Contents
How NSF Fees Work
Overdraft vs. NSF Fees
Examples of NSF and Overdraft Fees
How to Avoid NSF Fees
Criticism of NSF Fees
NSF Fee FAQs If a bank receives a check written on an account with insufficient funds, the bank can refuse payment and charge the account holder an NSF fee. **Authorize positive, settle negative:*Financial institutions authorizing transactions at a time when customers had sufficient funds in their accounts to cover them, or promising to set aside funds—and then charging fees because the accounts had insufficient funds later, at the actual time of posting and settlement. Banks charge NSF fees when they return presented payments (e.g., checks) and overdraft fees when they accept checks that overdraw checking accounts.

Non-Sufficient Funds (NSF)

An offline debit card allows a cardholder to pay directly from their bank account without a pin and with a delay of debit from their account.

An offline debit card is a type of automated payment card, similar to a traditional (online) debit card, that allows a cardholder to pay for goods and services directly from their bank account. The same overdraft fees and returned payment fees of a debit card apply to offline debit cards.
Offline debit cards work in a similar way as traditional debit cards but can also be compared to the process of writing a check. An offline debit card is a type of automated payment card, similar to a traditional (online) debit card, that allows a cardholder to pay for goods and services directly from their bank account. An offline debit card does not require a PIN for use, only a signature, and can be compared to writing a check.
Offline debit cards are primarily used for payments and cannot be used for withdrawing or depositing funds at an ATM. Offline debit cards may also be known as “check cards.”
An offline debit card is not connected to an online system when used.

Offline Debit Card

An outstanding check draws on the funds in an individual’s or business’ bank account but has not yet been cashed or deposited by the payee. 

Table of Contents
What Is an Outstanding Check?
How Outstanding Checks Work
Risks and Outstanding Checks
How to Avoid Outstanding Checks
Outstanding Business Checks When the payee deposits the check at a bank, it requests the funds from the payor’s bank, which, in turn, withdraws the amount from the payor’s account and transfers it to the payee’s bank. To reconcile the bank statement so the company’s cash account in its financial statements is consistent with the cash in its bank account, the company must adjust its “balance per bank,” which refers to the ending cash balance on a bank statement. An outstanding check also refers to a check that has been presented to the bank but is still in the bank’s check-clearing cycle. A check is a financial instrument that authorizes a bank to transfer funds from the payor’s account to the payee’s account.

Outstanding Check

Overdraft protection is a fund transfer or loan that banks offer to customers to cover checks or debits larger than their account balances, so as to avoid nonsufficient funds fees.

Understanding the Overdraft 'Opt-in' Choice

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Overdraft protection is an option offered in bank accounts that prevents check, ATM, or debit card transactions, as well as wire and electronic transfers, from causing the account's balance to fall below zero and triggering an overdraft fee or a non-sufficient funds (NSF) fee. Overdraft protection is a guarantee that a check, ATM, wire transfer, or debit card transaction will clear if the account balance falls below zero.
There may be heavy fees and interest associated with overdraft protection, depending on the kind of linked account used.
Overdraft protection lines of credit can range from $250 to $5,000 and above.
Customers who choose overdraft protection can link their checking accounts to credit cards, savings accounts, or other lines of credit to avoid triggering an overdraft or NSF fee. Overdraft protection is an option offered in bank accounts that prevents check, ATM, or debit card transactions, as well as wire and electronic transfers, from causing the account's balance to fall below zero and triggering an overdraft fee or a non-sufficient funds (NSF) fee. In 2019, the most common overdraft fee was $35, with an average of $33.36, according to a BankRate.com survey of 10 banks and thrifts in 25 large U.S. markets.﻿﻿ Credit unions tend to charge less, an average of $26, according to a 2019 NerdWallet.com study.﻿﻿ Some banks, such as online banks, do not charge overdraft fees. In the absence of overdraft protection, it is not uncommon for banks to charge multiple overdraft or NSF fees per day, such as when a consumer makes successive purchases without realizing that the amount in their account is insufficient to pay for the purchases.

Overdraft Protection

A payroll card is a prepaid card some employers use to pay their employees' wages or salaries each payday. Discover more about payroll cards here.

A payroll card is a prepaid card on which an employer loads an employee’s wages or salary each payday. Employees can also use their payroll cards to get cash at an ATM, just like employees with checking accounts and debit cards can. Payroll cards help employers save money by not having to issue printed checks and also allow them to offer cards to employees who do not have bank accounts. For employees, advantages to payroll cards include the ability to pay bills online, shop online, make automatic bill payments, and get cash at an ATM. A payroll card is a prepaid card some employers use to pay their employees' wages or salaries each payday.

Payroll Card

A postdated check or draft will display a future date on it. A check user will often write this in to specify that they do not want to withdraw the amount of the check until the date specified.

Can a Bank or Credit Union Cash a Post-Dated Check Before the Date on the Check?

The term postdated refers to a payment that is meant to be processed on a specified date in the future. For example:
An individual may write a postdated check when they don't have enough funds in their account, thus avoiding a non-sufficient funds (NSF) charge
A tenant can provide their landlord with postdated checks for the rent when they move in to avoid late charges if they forget to pay
Someone may offer postdated payments when they owe money to another individual or company
The Uniform Commercial Code (UCC) enables lenders to loan money, secured by a borrower's personal property. For example, if Mike writes a check on the Jan. 14, but postdates it for Jan. 28, the bank will not (or should not) cash the check for another two weeks.
Postdated payments can be made using electronic methods as well. By writing a date in the future on a check, the payer indicates that they do not want the payee to cash the check until that date. Although postdated payments cannot be cashed until the date specified, financial institutions may do so prior to that date.

Postdated

A routing transit number is a nine-digit numerical code used to identify a banking or other financial institution for the purpose of clearing funds or processing checks in the United States.

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A routing transit number is a nine-digit number used to identify a bank or financial institution when clearing funds for electronic transfers or processing checks in the United States. The numbers following the routing transit number on a check are the account number and check number for the bank from which the funds are to be drawn. Routing transit numbers are often used when setting up a wire transfer or direct deposit.
A bank’s routing transit number is located at the bottom of a check and is the first nine digits on the far left. A routing transit number is a nine-digit number used to identify a bank or financial institution when clearing funds for electronic transfers or processing checks in the United States. A routing transit number is a nine-digit number used to identify a bank or financial institution when clearing funds or processing checks.

Routing Transit Number

A share-draft account allows credit union members to access their share balances by writing drafts on their accounts. 

S.1756 - Consumer Checking Account Equity Act of 1979

Prohibition Against Payment of Interest on Demand Deposits

A share-draft account is a version of a checking account, except it is offered by a credit union instead of a bank. A share-draft account is a credit union account that is similar to a bank's checking account, except it is equivalent to buying a share in the credit union. Another key difference between share-draft accounts and checking accounts is that many banks require a monthly minimum balance or charge monthly fees for the maintenance of a checking account. A share-draft account refers to a credit union account that is similar to a bank's checking account. Share-draft accounts allow credit union members to access their share balances by writing drafts on their accounts.

Share-Draft Account

A share draft is a type of draft, which credit unions use, as a way to access funds in individual accounts. 

A share draft is a type of draft, which credit unions use, as a way to access funds in individual accounts. Shares represent partial ownership in a credit union, and credit union members (shareholders) write drafts (checks) as a way to access the value of their partial ownership (shares). A share draft is a type of draft, which credit unions use, as a way to access funds in individual accounts. Share draft accounts at credit unions are the equivalent of personal checking accounts at banks. What's more, share draft accounts usually carry neither monthly fees nor minimum balance requirements, unlike many bank checking accounts.

What Is a Share Draft?

A stored value card is a type of electronic bank debit card. Stored value cards have a specific dollar value programmed into them.

A stored value card, or gift card, is a type of electronic bank debit card. Closed-loop cards have a one-time limit, as with Visa, Mastercard, and American Express gift cards, merchant gift cards, and prepaid phone cards. A stored value card differs from a bank debit card in that a debit card does not have a specific dollar value pre-loaded. While closed-looped cards can only be prepaid and use once, open-loop cards may be reloaded with funds and used continuously.
Stored value cards come in two major categories. Credit card networks, bank card issuers, and retail merchants provide these cards as a way to provide non-cash payment cards to the public for a variety of purposes.

Stored Value Card (SVC)

Substitute checks are copies of checks used by banks in lieu of the original. They were made legal by the Check Clearing for the 21st Century Act.

Substitute checks are copies of checks used by banks in lieu of the original. Provided that the copy includes both the front and the back of the original check, banks are free to use substitute checks when obtaining payments, significantly expediting the check clearing process. When a person or business creates an image of a paper check to complete a remote deposit, the bank is technically receiving that image and converting it into a substitute check using their check-cashing software platform. After all, banks today may not retain physical checks on file for as long as they did before since the original check is irrelevant once a legitimate substitute check has been created. This digital copy becomes a substitute copy for the original check, meaning that Emma is able to deposit her funds without ever presenting the original check to her bank.

Substitute Check Defined

A tiered-rate account is a bank account—checking or savings—that pays different rates of interest depending on the amount of funds held in it. 

Table of Contents
What Is a Tiered-Rate Account?
How Tiered-Rate Accounts Work
Special Considerations It can be any type of account but usually is either a money market or a savings account.
Generally, tiered-rate bank accounts will offer higher rates of interest for larger balances, in order to encourage customers to save and remain loyal to the bank in question. For instance, for deposits between $10,000 and $50,000, XYZ offers a rate of prime plus 0.25%; for deposits between $50,000 and $100,000, the rate is prime plus 0.50%; for deposits between $100,000 and $500,000, the rate is prime plus .75%; and lastly, for deposits above $500,000, the rate is prime plus 1%. A tiered-rate account is a bank account that pays different rates of interest, depending on the amount of the funds held in it. If default rates are low and the bank can earn a higher rate of interest on their loans than they pay to their account-holders, then the bank will be profitable.

Tiered-Rate Account

A transaction deposit is a bank deposit that has immediate and full liquidity, with no delays or waiting periods. 

A transaction deposit is a bank deposit that has immediate and full liquidity, with no delays or waiting periods. A checking account, for example, is a common transaction deposit account and the account holder is allowed to withdraw the amount at any time. A transaction deposit is a deposit made to a transaction account, such as a checking account. In contrast, time-based deposits, such as a certificate of deposit, are examples of non-transaction deposits because they cannot be transferred or withdrawn at a moment's notice. Transaction deposits stand in contrast to non-transaction deposits, which are time deposits.

Transaction Deposit

The Treasury General Account is the general checking account, which the Department of the Treasury uses. 

The Treasury General Account is the general checking account, which the Department of the Treasury uses and from which the U.S. government makes all of its official payments. The Treasury General Account Program is made up of three entities: the TGA Network, the Seized Currency Collection Network (SCCN), and the Mail-In TGA (MITGA).
All three programs are responsible for different areas of receiving cash and checking deposits in the Treasury General Account. The Federal Reserve Bank buys and sells U.S. Treasury bills and bonds to control the country's money supply and manage interest rates, the money of which goes to and from the Treasury General Account. The Treasury General Account is the checking account used by the Department of the U.S. Treasury, from which the U.S. government makes all of its payments. The Treasury General Account is the general checking account, which the Department of the Treasury uses and from which the U.S. government makes all of its official payments.

Treasury General Account

A Unified Payment Interface (UPI) is a smartphone application which allows users to transfer money between bank accounts.

A Unified Payment Interface (UPI) is a smartphone application that allows users to transfer money between bank accounts. To send money, users need an account number, the Indian Financial System Code (or IFSC, which is an alphanumeric code that facilitates electronic transfers), the mobile number of the recipient, and a virtual ID or Aadhaar number (which is like a Social Security number). A Unified Payment Interface (UPI) is a smartphone application that allows users to transfer money between bank accounts. This app eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction making it a safe way to bank. The system is said to be a safe and secure method of transferring money between two parties and eliminates the need to transact with physical cash or through a bank.

Unified Payment Interface (UPI)

A zero balance account maintains a balance of zero. Here's how they work and why they can be helpful.

A zero balance account (ZBA) is pretty much exactly what it sounds like: a checking account in which a balance of zero is maintained. A zero balance account (ZBA) is an account in which a balance of zero is maintained by transferring funds to and from a master account. Whenever funds are required in the ZBA checking account to cover a charge or transaction, they are transferred from the master account in the exact amount required. Corporations sometimes use zero balance accounts to ensure that funds are readily available throughout different departments, to eliminate excess balances in separate accounts, and to maintain greater control over the disbursement of funds. A zero balance account (ZBA) is pretty much exactly what it sounds like: a checking account in which a balance of zero is maintained.

Checking Accounts

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Terms in Checking Accounts